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The city of Chennai, India, is currently experiencing a significant surge in onion prices, with retail prices reaching 80/kg, a substantial increase from the 50/kg price just ten days ago. This price hike is primarily attributed to disruptions in the supply chain, specifically from Maharashtra, a major onion producing state. While vendors have not encountered a shortage of onions from Andhra Pradesh, delays in shipments from Maharashtra have forced them to increase orders from Andhra Pradesh to compensate.
The Andhra Pradesh variety, known for its smaller size, is priced 10/kg lower than the Maharashtra variety. Despite the increased sourcing from Andhra Pradesh, the quality of onions available in the market has been reported as poor. The moist nature of the onions leads to a shorter shelf life, forcing retailers to discard a significant portion of their stock. To account for these losses, vendors have been forced to increase retail prices. The demand for onions from other states has also risen due to the ongoing monsoon season, which further contributes to the escalating prices.
Experts predict that prices are likely to climb even higher in the coming days, driven by the anticipated increase in rainfall. Historical data from last November reveals that onion prices rose to over 150/kg due to heavy rainfall in Maharashtra, highlighting the significant impact weather conditions can have on onion prices. The current scenario underscores the vulnerability of the onion market to supply chain disruptions and weather-related events, posing a significant challenge for consumers in Chennai and other parts of India.
Source: Skyrocketing Onion Prices Reach 80/kg in Chennai Amid Supply Issues